Editorial: Sensible move
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Leaving it until the last minute, the meeting comes the week before consultation closes on the Government’s proposed emissions pricing plan and follows some criticism that the three groups – via He Waka Eke Noa’s proposal to government – have not advocated strongly enough on farmers’ behalf.
DairyNZ chair Jim van der Poel says a united voice on emissions pricing is the best way to ensure positive policy outcomes for farmers.
“All three organisations have reaffirmed nine core principles that we will all be raising in our submissions and through the He Waka Eke Noa partnership,” he says.
The organisations claim the Government’s emissions pricing proposal differs significantly from the He Waka Eke Noa partnership’s recommendations.
The recommendations were designed as a whole-farm system approach to reduce emissions, meet targets and give recognition and reward for on-farm planting.
Meanwhile, the Government’s plan includes alternatives to He Waka Eke Noa recommendations, including an interim processor levy as a transitional step; some collective reporting to begin with; and sequestration recognised for riparian and indigenous vegetation.
“Our organisations are all united in our determination to get the best possible outcome we can and will continue to work closely together as we advocate for farmers,” says B+L NZ chair Andrew Morrison.
Federated Farmers chair Andrew Hoggard said individual organisations would continue to raise sector specific issues.
The nine core principles that will be raised directly with the Government are:
1. The current methane targets are wrong and need to be reviewed. Targets should be science-based, not political, and look to prevent additional warming.
2.The methane price should be set at the minimum level needed and be fixed for a five-year period to give farmers certainty.
3. Any levy revenue must be ringfenced and only be used for the administration of the system, investment in R&D, or go back to farmers as incentives. Administration costs must be minimised.
4. The future price should be set by the Minister on the advice of an independent oversight board appointed by all He Waka Eke Noa partners.
5. The system must incentivise farmers to uptake technology and adopt good farming practices that will reduce global emissions.
6. All sequestration that can be measured and is additive should be counted. We stand by what was proposed by the He Waka Eke Noa partnership on sequestration.
7. Farmers should be able to form collectives to measure, manage, and report their emissions in an efficient way.
8. Farmers who don’t have access to mitigations or sequestration should be able to apply for temporary levy relief if the viability of their business is threatened.
9. We will not accept emissions leakage. The way to prevent that happening is by getting the targets, price, sequestration, incentives, and other settings right.
